Loading...
•
Dec 31, 2022
Perdoceo Q4 2022 Earnings Report
Perdoceo Education Corporation reported an increase in revenue and a decrease in operating income and earnings per share for the fourth quarter of 2022.
Key Takeaways
Perdoceo Education Corporation reported a 10.2% increase in revenue to $176.1 million for the fourth quarter of 2022, driven by growth at both CTU and AIUS. However, operating income decreased by 34.4% to $22.7 million, and earnings per diluted share decreased to $0.23, compared to the prior year quarter.
Revenue increased by 10.2% to $176.1 million, with CTU increasing by 13.1% and AIUS increasing by 5.9%.
Operating income decreased by 34.4% to $22.7 million, while adjusted operating income decreased 22.9% to $32.4 million.
Earnings per diluted share was $0.23, compared to $0.35 in the prior year quarter.
Total student enrollments decreased by 3.0%, with a 2.0% increase at CTU offset by a 10.8% decrease at AIUS.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The Company is providing the following 2023 outlook, subject to the key assumptions identified below.
Positive Outlook
- Operating Income $41.3M - $43.3M
- Depreciation and amortization $5.1M
- Legal fee expense related to certain matters $4.6M
- Adjusted Operating Income $51.0M - $53.0M
- Earnings Per Diluted Share $0.47 - $0.49
Challenges Ahead
- prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s estimates
- no significant impact of new or proposed regulations, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment, which may require operational changes in the way the Company’s academic institutions enroll, support and educate current and prospective students, among other impacts
- no significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters
- the impact from student loan initiatives implemented by the current administration remains consistent with management's estimates
- earnings per diluted share outlook assumes an effective income tax rate of approximately 26.0% for both the first quarter and the full year
Revenue & Expenses
Visualization of income flow from segment revenue to net income